Eco reported that, within the scope of the State Budget for next year, the Government is negotiating with the parties on the left for the mandatory inclusion of income in the IRS, which could mean a tax increase for many owners.
“If the PS and the Government give in to this, we are taking another totally wrong step in the direction that the economy needs”, criticized Rui Rio, in statements to journalists.
If this news is confirmed, said Rio, it will be “extremely serious” and the PSD will present a proposal to the contrary in the next State Budget.
“The budget is coming in, and if that's there, no doubt about it. It is structuring in our speech in terms of economic policy in Portugal, we have to encourage saving and not consumption", he defended, saying that, "if I were prime minister", I would try to lower the release rates - which apply to those who receive rent or to bank savings, for example - for as little as possible.
Rui Rio made a point of explaining that, if the mandatory aggregation of income is advanced, it will apply to savings and income received by the owners “Whatever their personal income tax rate is”.
“This means that, if the release rates end, people who have rented houses will have a brutal tax increase (…), the same thing for those who have savings bonds”, he said.
For the PSD leader, in a country where the savings rate is already “very low” and that should be the engine of investment, “the Government is going in a direction that is strictly contrary to what should be done”.
“In practice, the Government says that it is not worth saving because we are going to tax savings more heavily,” he said.
Rui Rio admitted that, in his program, the PS already had “a few lines” on the subject, but “in practice” he never accepted the mandatory inclusion, fearing that this time the measure would advance.
“As we know, the Government works hard, but then it gives in so that the budget can be approved”, he predicted.
Asked if this news leads the PSD to anticipate, as of now, the vote against in the next Budget, Rio replied in the negative.
“I'm not going to announce it because the Budget doesn't exist yet, but if the logic is to set up a PS Government budget with very strong influence from the PCP and BE, I don't see how we can vote in favour”, he admitted.